Bitcoin has progressed from an untraceable darknet currency to the get-rich-quick investment scheme that everyone is talking about. A while ago when hardly anyone ever knew about bitcoin and now when everyone seems to be raving about it.
People: Bitcoin will revolutionize the market and the way it works. It will disrupt the old, traditional system and pave way for a bright, utopian future.
Well, okayy! What has gotten everyone so engaged in bitcoin now? Why are so many people getting the bitcoin fever?
One of the major reason why everyone has bitcoin on their tongue is partly that of the huge rise in price. The frequent price jumps had blown people’s mind. Bitcoin hit $10,000 for the first time on November 28. Over the next week, it went on to $12,000 and then took another huge leap to $14,000 in only 23 hours. In another 15 hours, it hit $16,000.
It took it eight years to reach $2,000 but only seven months to increase eight times. But now, its back to $4,000. This crazy roller coaster ride has everyone talking about it. And due to this, it has garnered significant media attraction; so much so that it has people singing about it.
Bitcoin; a currency alternative
Another reason is bitcoin’s initial proposition as an alternate to fiat currency and the current banking system. But ironically, the current boom has made it difficult to be used as a currency. Companies don’t want to get involved in its risk of high volatility and transaction fee.
Since it fluctuates like a mad cow, it can shoot up when people are making purchases. So imagine, you really liked this thing and you were all set to buy it and BAM! Bitcoin soared abruptly and you can no longer access that thing. Fiat currency in comparison doesn’t soar or drop that dramatically, making it considerably a safer option.
Join the bandwagon!
So, humans are known to ride a bull because everyone else is doing so; the herd mentality as we call it.
As humans are easily tempted to do what the others are doing, it is very easy for us to follow suit. Moreover, the media has developed a sense of inclusion in us; we feel the need to b part of something so we don’t miss out, and the more we hear about it, the safer it seems.
“The social phenomenon is kind of an avalanche; it’s a self-fulfilling prophecy,”
Theory of Everything; mind specifically
To make matters more scientific, people aren’t leaning towards bitcoin only because of the reasons mentioned above but it has to do a lot with how our brain works, not specifically in relation to bitcoin but the way it reacts to different things.
Some researchers tried speculating why some adhere to the bitcoin bubble and whereas some maintain a safe distance. It turns out that the parts of our brain that are responsible for evaluating other people’s thoughts and feelings are active when we make an investment that rapidly increases in value.
The theory of mind tries to understand human behavior and people with a heightened sense of the theory of mind are more likely to be involved in a bubble.
People have their own reasons to get involved in bitcoin and whatever they are, they are helping bitcoin rise in value.